Equifax offers lenders access to new FICO score

Posted by Joe on June 15th, 2009

Equifax is making a new type of credit score available that will potentially change the way that lenders view your next loan application. Dubbed Beacon 09, the new Equifax score is based off of Fair Isaac's FICO 08 methodology.

The new score will generally penalize consumers less for one-time mistakes, such as paying a bill late. On the other hand, the new model is harsher on those people that carry very high debt to credit ratios.

Most lenders will continue to use standard FICO credit scoring methodology for now, but consumers should expect that the FICO 08 score methodology to become more frequently used over time. As such, it is a good idea to take a hard look at your current debt load and making plans to pay it down if you anticipate the need for additional credit in the near future.

Equifax is the second major credit bureau to adopt the new scoring methodology from FICO. TransUnion began offering the score back in January. It is unlikely that Experian, the remaining major bureau, will be offering FICO 08 any time soon as the two companies are currently involved in an ongoing lawsuit.

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